MintLife Blog | Personal Finance News & Advice » Cap http://www.mint.com/blog The blog of the free, simple personal finance solution. Track all your spending automatically, find the best deals, save more money. And save the world. Sat, 21 Nov 2009 00:50:36 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Three Ways to Ask for More Money http://www.mint.com/blog/moneyhack/three-ways-to-ask-for-more-money/ http://www.mint.com/blog/moneyhack/three-ways-to-ask-for-more-money/#comments Thu, 02 Aug 2007 18:01:57 +0000 Cap http://www.mint.com/blog/moneyhack/three-ways-to-ask-for-more-money/ ]]>

Remember when your mom told you that if you wanted something from someone, you should ask nicely?

“Make sure to use ‘Please,’ ‘May I,’ and ‘Thank you,’” She’d remind you. And even today, we’re here to tell you, it’ll usually work. You’ll get what you want, and everyone’s happy.

One of the easiest ways to save some money is to simply ask for it. Internet cable bill too high? Ask for a discount. Credit card interest rate too high? Ask for a lower amount. Too many late fees on your billing accounts? Stop paying your bills late, please. And oh yes, ask for a waiver on the fee.

Below are some steps you can try out. Don’t forget to say please.

Ask for a Lower Cable Bill

Asking for a discount on your cable TV, internet, DSL, and other bills is one of the easiest ways to save money — especially if you’ve been a long-time subscriber to the service.

Here’s what to do:

  1. Find the customer service number on your bill and make the call.
  2. Once you’ve reached a representative, ask for a retention specialist or cancellation department.
  3. They may immediately transfer you or simply ask you what the problem is.
  4. Politely ask for a discount. Here’s an example:

    5. “Hi. I’ve been a customer at [insert your provider's name] for a while now. I’ve been comparing and contrasting the products from [insert competitor's name], which offers [insert product] for [insert price less than your current provider]. I’ve also noticed that you offer new customers sign-up discounts. Is there any way you can offer me that discount as well?

  5. The customer service rep will either immediately offer you a discount, or proceed to tell you why their service is worth much more than the competitors.
  6. If you don’t get a discount offer, ask politely again for a discount. Try: “I understand what you’ve told me, but I would still like to have a discount. May I please have a discount on my monthly bill because I am a loyal customer?”

What happens if you still don’t get a discount?

No worries. Simply tell them thanks for their time, hang up, and try again later. Results definitely vary, but if you’ve been a long time customer and you have never gotten a discount, you will most likely get a discount.

Another method you can try is to threaten to cancel. This isn’t a necessary tactic to lower your bill, but if you believe it will increase your chances (and it’ll probably will), you can definitely give the method a try.

Note that even if you threaten to cancel and they call your bluff, you can always ask them to set the cancellation date 2-3 weeks later, as it would take time for the other service provider to get you setup. If you change your mind on cancelling the service, you can always call back later to tell them not to cancel your service.

How much money can you save?

Discount varies from provider to region to each individual customer, but expect at least $10 off your monthly bill for six months. That’s $60 for a 10-20 minute phone conversation!
If you have an even more expensive plan, you can save as much as $20 per month for over six months! For some people, that’s $120 or $240 for a 10-20 minute phone conversation!

Sweet? You bet.

Ask for a Lower Credit Card Interest Rate

One of the ultimate ways to save immediate money is to ask your credit card company to lower your interest rate. Forget $60. If you carry a large balance, this simple act of asking can save you hundreds, if not thousands of dollars.

Here’s how:

  1. Like the example above, dust off your monthly statement and look up the customer service number to make the call.
  2. Once you’ve reached a representative, ask for the cancellation department or simply ask for a lower interest rate.
  3. Here’s an example:

    4. “Hi. I’ve been a customer at [insert credit card company's name] for several years, but lately I’ve been receiving lots of offers from other credit card companies on lower interest rates [provide examples]. Some of these rates are significantly lower. I was wondering if you can lower the interest rate on my credit card account to [insert a lower percentage, shoot for at least 3-point lower].

  4. That’s it. You may hate making calls, but simply taking the 35 seconds to ask the question above might just save you hundreds of dollars.
  5. The customer service rep will generally check if you qualify for a lower rate. They may immediately lower the rate to the percentage you want, or find a compromise in between. If the rate they offer isn’t to your liking, ask politely again for a lower rate. It doesn’t hurt to try!
  6. No dice with the initial representative? Be persistent. Ask to talk to a supervisor. Call back another day. Threaten to close your account (and why not, especially if you can switch to a card with a better rate).

Are the credit card companies lowering your rates out of the goodness of their corporate heart?

Nope.

They will, however, lower your rate because competition in the credit card industry is fierce. The cost to acquire and retain a good customer (that is, one that pays interest rate) can be extremely high. Many credit card companies will rather lower your rate than lose you as a customer.

Remember that when you make the call:

  • Keep the request simple and direct.
  • Aim for a high rate reduction.
  • Be persistent.
  • Be polite and direct.

How much can you save?

Let’s take the often-touted average household credit card debt of $8,000 and attach an average rate of around 16%. In a year, the interest accumulated on this credit card will amount up to $1,200.

Now let’s say you simply get a 6% reduction in your interest rate. In a year, the interest rate accumulated on an $8,000 credit card balance at 10% would be around $800. That’s over $400 in savings for some haggling with the credit card company.

Ask for a Waiver on Bank Fees

Getting dinged by your bank on a late fee, non-sufficient fund fee, or over-the-limit fee is not fun. They generally result from careless mistakes, but these mistakes can easily cost you a dinner out with that hot guy/gal next door.

What’s a savvy consumer to do?

Ask your bank to forgive you.

It works, especially if this is your first offense.

Here are two examples from yours truly:

Here’s a late fee of $39.00 on a Citi credit card, for a simple balance of $134. That’s a 29% penalty for paying late! Plus a $19 insufficient funds fee “just” because I over-drafted by $1,500? D’oh!

Here’s what to do:

  1. Unlike the phone method above, contact the company via email. Many credit card, banking accounts have an internal email messaging system where you can contact customer service. Why? It’s much easier to come across with a neutral tone via an email. Here’s a screenshot on how to contact Citi’s customer service:

  2. Write up a simple request and politely ask the customer service rep to waive your fee.

    3. “Hi there. I have been a loyal customer of [insert bank name] for awhile now and have never [or rarely] paid my bill late [went over limit, etc.]. I was recently given a fee on my account and I would like to ask you to please waive this recent fee.”

  3. If you’re lucky, you would get an immediate response like the ones below:

    4. And the credit usually shows up immediately:

  4. What happens if you don’t get what you want? As with other tips above, be persistent! Try a different representative on a different day. Email again. Be firm and direct. If this is your first offense, or the first time you’re asking for a fee waive, there should be little reason why your request would be denied.

How much can you save?

Late payment fee for credit cards can vary drastically, and are usually proportionate to your balance. Basically, the higher your balance, the more late fees you’ll have to pay. In the examples above, I saved $58. Saving $58 for two minutes of email? Why not!

Asking for more poe

Not Getting What You Want?

Sometimes, no matter how hard you try or how nicely you ask, you won’t get what you want. In those situations, it may actually be okay to cancel and switch!

Your cable internet bill putting a damper on your wallet? Switch to an alternative DSL internet service. Although some DSL service may be slower than their cable competitors, for some cable users, the speeds are comparable (especially when compare to higher rate DSL packages).

Take AT&T’s High Speed Internet offer as an example. They have an Elite DSL service at $34.95 per month for speeds up to 6.0 Mbps. It’s not bad when compared to some cable internet at a whopping $49.95.

If you want even cheaper prices at acceptable speed, Verizon also offer different DSL packages at various speeds. Of course, some research on speed and service is always a good idea, before you switch to a different Internet Service Provider.

As for those pesky credit card accounts, if your credit card company won’t lower your interest rate and you have a high balance, it may be time to consider transferring your balances.

If you do decide to transfer your balance to a lower-rate card, consider cards with long introductory rates such as Blue from American Express, which offers 0% up to 15 months. When transferring balances, you should especially take care on the rates of the account after the promotional period. If the rates are significantly higher than those of your current rate, and you cannot pay off the balance within the promotional period, it may not be a good idea to switch!

How Mint Can Help You

If the 1,671 words above are too much of a bother for you, consider checking Mint out when we’re available. Mint will not only help you keep track of your money, it will also help you save and earn more money.

High cable bill? If a lower-priced service is available for your area, we’ll find it for you. High interest-rate credit card and not enough time to research a better, lower-rate card? Mint will search through offers, compare and contrast objectively to find you the best interest rate credit card — specifically for your situation. If your finances can use more organization and better savings without effort, Mint’s personal finance software is for you.

If you have tried any of the method mentioned above, please share your results. Did you like this post? If so, please share it.

]]> http://www.mint.com/blog/moneyhack/three-ways-to-ask-for-more-money/feed/ 19 Personal Finance Interview with Shelley Elmblad of About Financial Software http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-shelley-elmblad-of-aboutcom-financial-software/ http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-shelley-elmblad-of-aboutcom-financial-software/#comments Mon, 30 Jul 2007 18:35:31 +0000 Cap http://www.mint.com/blog/personal-finance-interview/minterview-with-shelley-elmblad-of-aboutcom-financial-software/ ]]> Name: Shelley Elmblad
Age: Well, someone recently told me I looked like I was 34…but I am really 43.
Net-worth range: Around $225k
Profession: Journalist/Writer – online media.
Websites: I currently write for About Financial Software and Suite101 Personal Budgeting; Cranial Dump is my personal mind-dump on the Net.

Who is your current personal finance hero?

Some people find my personal finance hero’s often loud communication style to be…well…annoying. But I have learned so much from him in less than a year that I call Jim Cramer my personal finance hero. Cramer taught me how to analyze companies as investments and market trends in simple language while being quite entertaining. Anyone who is interested in investing needs to read Jim Cramer’s Real Money: Sane Investing in an Insane World to learn how to do the home work necessary to choose investments that are appropriate for their situation, and check out Mad Money on CNBC too.Cramer is not just another “talking head,” he is an educator. Everyone should understand at least the basics of investing because even if you have someone else manage your investments, it is still your money and no one will care about it like you will.

Your husband and you took a 40% cut in income because you had to leave work to raise your child. What methods did you use to handle this financial challenge?

I tried working part-time when my daughter was a baby but my husband and I were not comfortable with the day care alternatives available, so we decided to take the plunge into the one-income world.The major thing that enabled us to take that cut in income was that we have always spent less than we earned so other than our mortgage, we had no debt. And, our mortgage payment was low. Just because the bank said we could afford a certain mortgage payment didn’t mean we wanted to spend that much.While I was home with my daughter I decided my job was to save money where ever I could. During that time we rarely ate at restaurants, and I stocked up on sale items and planned meals around what was on sale. I would go between three grocery stores to buy what was on sale at each store, and I clipped coupons and used them on double coupon days at one store (the savings in double coupons was amazing).I read everything I could find on living on less money and chose the methods from those books that would work for my family. Online, I used The Dollar Stretcher and I still do (you interviewed Gary, the guy running the show on that site).I discovered rummage sales in some wealthy neighborhoods where I could get gorgeous baby and toddler clothes and toys for very little money. We did not go to the movies (babysitter plus movie tickets = money needed for groceries) and did not take vacations. To keep from feeling very deprived, I kept my mind on my goal of raising my daughter and I enjoyed the simplicity of our family life; that season of my life would not last not forever. I was grateful for what we did have and spent little time dwelling on thing we chose to do without for awhile.We had monthly savings goals then as we do now, and we saved up for Christmas gifts and other larger purchases so we would not get taken by surprise by a big outflow of cash. I bought some Christmas gifts in August because they were on sale then but would be priced higher in the fall.

Although I wasn’t sure how we would be able to keep tithing at church, we chose to continue to do so during our financially scarce years. At the end of each month we always had enough. It is an amazing principle; when we give to others, the world gives back.

You have mentioned that your parents frequently discussed earning, saving, and investing money around you and your brothers, so personal finance is a topic that became natural for you. Do you think parents can be a big influence on how their children will handle finances when they grow up?

Parents absolutely influence their children’s financial choices. Kids imitate what they see and the home environment they grow up in provides them with a compass for what is acceptable. Of course most kids naturally rebel and make spending mistakes, but if they were exposed to sound financial practices growing up, they will likely go back to those fundamentals to recover from mistakes and move on to make better decisions in the future.

What is your method in teaching your child the basics of finances?

My husband and I teach by example as well as explaining finances to our daughter. My daughter has seen us save for things we want, and she has seen us do research to get the best value for our money, and we discuss financial responsibility with her at her level. Now she saves her money for the latest Nintendo game and she helps me to figure out the best buy at the grocery store. I also teach her that some things are worth paying more for because of quality or because they are simply more enjoyable.

How do you handle your finances with your husband? Does a single person handle all the details or is this a joint effort?

I handle the majority of our finances but I would never make a major decision without asking my husband what he thought about it. I think we fell into this arrangement because I was interested in researching how to save money and how to grow investments.

While we’re on that topic, what is your opinion for those couple that handles or don’t handle their finances together (e.g, keeping separate accounts etc.).

I have not thought about this for years. I thought my husband and I would keep separate accounts plus a joint account when we were first married but I quickly found it to be unnecessary because it’s just easier to keep one account, and each of us knew what the other was spending anyway. I suppose if two people had very different ideas about spending, a his/hers/ours set up would be ideal. I can also see how problems could result if something is needed for the collective household that is more expensive than anticipated but one person wants to use their money on themselves instead of contributing to defraying the costs.I think the answer to whether separate accounts work is, “it depends.”

Why and how did you become a guide at the Financial Software section at About.com? And Suite101?

I’ve always liked About.com and have used it for years as a resource for research on just about anything (and I do research just about anything!). I would occasionally check to see if I could cover any of their topics, and when I saw financial software was open it seemed like a good fit because I had used many financial software packages and have designed and taught computer classes.I like to teach people how to use software to automate tasks and to reduce redundancy. I worked for a crazy lady once who insisted that I enter inventory data into a spreadsheet even though it automatically went into a database as raw materials were used. Well, that’s one of my definitions of crazy: spending time doing something that is already done. There is more to the crazy lady story, but I’ll leave it at that was the worst job I’ve ever had. I think she ties for worst boss I’ve ever had as well.I started writing for Suite101 because I like writing about personal finance in general. While my About.com work is about personal finance software tools used to manage money, I can’t get into more specific information there like types of mutual funds or IRAs.

What is your approach when evaluating personal finance software?

I approach the software methodically and ask myself several questions. Does it have all the standard features other finance software has, and does it have unique features? Does it navigate easily? Is the help documentation complete? As I use the software I think about who would benefit from the features. I also consider what the software offers for the price, and of course, the “kewl factor” of how the software looks and functions is something to note.

As a writer on personal finance, what are some of the challenges you face to convey the concepts to readers?

With financial software, I need to explain how people can benefit from features, and I can’t take for granted that a reader understands what terms like “download” and “OEM” mean so I link to definitions. When I do tutorials, I give background information to make sure the steps in the steps in the tutorial make sense.With general personal finance writing, I like to explain concepts at a very basic level or I give background information before I get into details. It’s important to give the reader information they can build their knowledge base on.

Current Financial Strategy:

Save and invest for retirement, save for unexpected expenses and save for a nice family vacation in a few years. I save some for college for my daughter as well, but retirement savings has to come before college. There are ways to finance a college education but you can’t finance your retirement.

Best Financial Tip:
Take care of your stuff. If what you are trying to sell looks clean and newer, you will get a lot more money for it when it is time to sell.

Do not neglect keeping your home in good repair and reasonably updated. Enjoy the comforts of updates while you live on the property, then get a better price for the home when you sell. The same goes for vehicles. My husband does an amazing job at keeping our vehicles clean and maintained and we get great trade-in values or get top dollar on vehicles we sell ourselves.

Worst Financial Move Ever:

This ties in with my Best Financial Tip: While my husband and I kept our first little starter home in good repair, we did little updating and it really needed more. We thought we were saving money by making do with things as they were, but we just broke even on that sale and we would have taken a loss had our real estate agent not taken pity on us and cut her commission.

Financially, I need help with:

I need to consolidate IRAs from five or six brokerages into one or two so I can track them easier. I don’t actually need help with doing this, I need to stop procrastinating and start filling out the forms to do it.

What personal finance tools do you currently use to track and manage your money?

I use Quicken to enter or download account transactions and to keep a budget. I use the online tools my brokerages provide for analyzing the portfolio and investment-related stuff. I use tax software for my quarterly and annual tax reporting.

What are the problems in your personal finance tools?

Sometimes my financial software refuses to download from financial institutions for days at a time. Financial institutions have been putting new security measures in place and that is likely messing up these downloads. Determining whether it is the bank or the software causing the problems is usually difficult to do since they each point a finger at the other.

How would your ideal personal finance tool work?

It would be awesome to find software that sold features ala cart so it wasn’t bogged down with “whistles and bells” I don’t need while having all the features I do need.

How much do you think you currently spend on eating out?

I work from home so I rarely eat out on my own. I maybe spend $20 a month to grab lunch while I’m out of the office. I’m more likely to spend $15 of that on ice cream cones over the month….does that count as going out to eat?

How often do you want to know about your personal finance?
Two or three times a week.

What is in your wallet?

(Unzips wallet) Whoa! This is like opening a closet that is crammed full of stuff! Scrunched up receipts, scrunched up money, Amazon Visa, ATM card. Stein’s Garden gift cards. After spending $500, you get $10 back (woo-hoo!). It took me over two years to get that 10 bucks.

Mint’s Note: If you are interested in personal finance software, or even just personal finance in general, we strongly recommend you bookmark or subscribe to Shelley’s Suite 101 personal finance site or About.com’s financial software guide. You will find many tips, tricks, and updates on using financial software at About.com; and an abundance in personal finance information at Suite 101.

Further Reading on the Topic

Personal Money Software

Money Management Software

Personal Finance Software

]]> http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-shelley-elmblad-of-aboutcom-financial-software/feed/ 2 Expenses Tracking: The True Cost of an iPhone, a Car, and Other Things You Don’t Know About http://www.mint.com/blog/finance-core/expenses-tracking-the-true-cost-of-an-iphone/ http://www.mint.com/blog/finance-core/expenses-tracking-the-true-cost-of-an-iphone/#comments Fri, 20 Jul 2007 18:22:02 +0000 Cap http://www.mint.com/blog/finance-core/the-true-cost-of-an-iphone-and-other-things-you-dont-know-about/ ]]>

Budget planning and expenses tracking are two things that we care about here at Mint. Learn more with great budget planning tips in our blog article index.

Budget Planning: The True Cost of an iPhone = $2,200

The iPhone will run you about $2,206. And if you live in Tennessee, where the sales tax is at a lovely 9.4%, it’ll cost you about $2,218.

Wait a minute, two thousand and two hundred dollars, for a cell phone? How did that happen?

Welcome to the concept of expenses tracking. Like with so many things in life, owning the iPhone doesn’t just end with a single purchase — it stretches on with service plans, taxes and more. By the end of the two years required contract, you’re talking real money. Let’s take a look at the math:

$599 iPhone x 8% sales tax ($47.92) = $646.92

$60 required cellular plan + $5 (taxes & fees) x 24 months = $1560

Total cost: $2,206.92.

Note: Engadget has a great compare and contrast on the iPhone vs. other smartphones.

Again, this is just for owning the phone for two years. What else can we dig up to show their true value? More than you know.

The Total Cost of Pet Ownership ~ $12,000

“All right,” you say, “what about this pet number you have going on here. Surely my dog won’t cost me $12,000?”

You may be right there, as your pet can easily cost more if you have a larger breed, or if you live in a costlier area.

Here are the budget planning numbers to owning a 50 pound dog (living in the Midwest)1:

$1,977 first year cost

$807 yearly cost x 14 years

Total cost: $12,468.00

According to the Wall Street Journal2, the average cost of ownership for a small dog that lives 15 years will cost almost $12,000 — and more than $23,000 for a larger breed that lives for 12 years. These are averages, mind you.

The Total Cost of Car Ownership ~ $42,000

Let’s take one of the best selling cars of 2007, a Toyota Camry LE (Automatic transmission, because who drives manual in America?), and punch some numbers3.

For a five year ownership, this is the cost break down:

Total depreciation cost: $11,482

Financing: $4,580

Insurance: $10,026

Taxes & Fees: $2,318

Fuel: $8,653

Maintenance: $4,310

Repairs: $689 (whew, thank goodness it’s a Toyota)

Total: $42,058

Once again, these are average numbers. They’re based on 15,000 miles per year, in a region that isn’t terribly expensive. Insurance can fluctuate from low prices to high prices depending on your situation. If you live in a costlier city, or drive more miles per year, many of these numbers can easily increase.

The Cost of Raising a Child Over 17 Years ~ $170,460

In this example, the numbers are based on a survey by the U.S. Department of Agriculture along with data from the U.S. Department of Labor4. They are numbers for a dual-parent family with medium household before-tax income of $39,100 to $65,800.

The cost of raising a child over 17 years:

Housing: $57,360

Food: $29,550

Transportation: $24,510

Clothing: $10,470

Health: $12,180

Child care/Education: $17,430

Miscellaneous (the occasional iPhone and pet): $12,720

Total cost: $170,460

Here’s a kicker. These numbers are updated with 2001 numbers using the Consumer Price Index. So yes, raising a child these days will most likely cost you more money.

The Costs of Buying a Home Over 30 Years ~ $1,073,000

Here are some numbers from a recent Wall Street Journal Article5, based on the average mortgage-interest rate in 2006. The national median home price was $222,000 during the time.

Purchase Price (typical single-family home): $290,000

Down payment: $58,000

Principal: $232,000

Interest @ 6.41%; total = $291,000 (after tax: 33% bracket): $195,000

Taxes & Insurance ($6,000 / year): $180,000

Maintenance ($300 / month): $108,000

Major Repairs & Improvements: $300,000

Total Cost: $1,073,000

Average numbers? You bet. If you live in a more expensive area and have subpar credit, expect to add quite a bit more to the price tag above.

Okay, So… Don’t Ever Buy or Do Anything?

Obviously, we can take any expenses we have, figure out its cost of ownership or its total opportunity cost in the long term, and make a big fuss.

When you see the numbers in a big picture, things will always seem a bit intimidating — and that’s kind of the point. In the world of personal finance (as in, your money), it’s common adage to focus on the long-term cost of your financial choices and expenses tracking so you can make better financial decisions today.

No one really sits down and breaks out the calculator before they buy a cup of coffee and donut (unless you happen to be a glasses-wearing blogger working at a start-up called Mint.com); most people also don’t input their night-out expenses into the spreadsheet before they pick up their date.

The point of seeing the numbers in a bigger picture is so that you understand the financial commitment you may face when you make a decision to buy an iPhone, Pet, or even a car.

Consider this: let’s say for whatever reason you have financial trouble in the future. You’re living paycheck to paycheck, and suddenly one month becomes extremely difficult.

Would you wish you’d had $2,200 so you can provide food for your family? Would you wish there’s an extra $12,000 laying around so you can take another step towards that down payment for a home? Would you wish you had an extra $42,000 so you wouldn’t have to worry about how you’ll pay your bill next month?

Wait, that’s not fair, you say.

“I love my dog and I don’t care how much he’ll cost me.”

You have a point there.

Whether you got to make your calls with a “frigging sweet iPhone,” let your child experience the joy of pet ownership, or just have a car so you can get to work — sometimes we just have to spend some extra money.

And that’s how it should be.

Money is for living. It’s a tool that we use to better our own lives and those of our loved ones.

It is, however, a tool you need to use wisely. You certainly don’t want to buy a gadget — or another financial responsibility such as a pet — if you’re between a rock and a hard place with the bank.

Even if you can afford the current monthly payment, if a purchase will hurt you financially in the long term, you may not be making a responsible financial decision.

Remember, reaching financial independence isn’t about spending all day long wondering how much money you could have or should have saved. A sensible financial lifestyle also isn’t about hoarding all your money for that rainy day.

Being smart with your money is about fully understanding the financial choices you make and seeing the entire picture – the true cost and total cost of ownership when you commit to a device, transportation, pet, or even a child.

In the end, it’s a careful balancing act — a pretty important one that you’ll need to think about occasionally, so that you can live well today and live even better tomorrow.

More to Read So You Can Make Smart Money Decisions

———————-
References:

  1. Cost of Owning a Dog from PetEducation.com
  2. Calculating the True Cost of a Pet from the Wall Street Journal
  3. True Cost to Own Ratings at Edmunds.com
  4. The cost of raising children at MSN Money Central
  5. Why Your Home Isn’t the Investment You Think It Is from the Wall Street Journal

Further Reading on the Topic:

Expenses Tracking

Budget Planning

Personal Budget Plan

]]> http://www.mint.com/blog/finance-core/expenses-tracking-the-true-cost-of-an-iphone/feed/ 32 70 Tidbits and Tips on Personal Finance http://www.mint.com/blog/updates/70-tidbits-and-tips-on-personal-finance-the-109th-carnival-of-personal-finance-first-post-edition/ http://www.mint.com/blog/updates/70-tidbits-and-tips-on-personal-finance-the-109th-carnival-of-personal-finance-first-post-edition/#comments Mon, 16 Jul 2007 14:00:53 +0000 Cap http://www.mint.com/blog/updates/70-tidbits-and-tips-on-personal-finance-the-109th-carnival-of-personal-finance-first-post-edition/ ]]>

The 109th Carnival of Personal Finance – “First Post” Edition

Your first bicycle. Your first day at school. Your kid’s first word. The first time you won the state lottery (or not). Life contains many firsts — and this is the first time we’re hosting the Carnival of Personal Finance.

Welcome to the Mint Blog. If this is your first visit, we encourage you to subscribe to our RSS feed.

To celerbrate our first hosting, we have listed each of the blog submissions below along with their first post — aka their blog birthday (when available). Check out the submissions below, if you find the blog interesting, subscribe to their RSS feed and leave a little note on their first post!

We’re glad you’re joining us today and we hope you enjoy this carnival (bonus fun facts below).

Mint’s Note: For those that don’t know, blog carnivals are weekly collections of interesting post from across the blogsphere. This week’s Carnival of Personal Finance is hosted by yours truly, The Mint Blog. Submissions are placed in specific categories and listed in no particular order.

Editor’s Choice:

  • Think About Your Finances Before Having (More) Children from Money, Matter, and More Musings. Golbguru muses on the questions you should ask in regards to finances before you consider having children. A very interesting read along with a lively discussion and input from the community. Golbguru’s first post: 8/21/2006.
  • Five Accounts You Absolutely Must Have (And Four You Don’t) from Blueprint for Financial Prosperity. The title is probably pretty self explanatory. Jim writes about five financial accounts you absolutely must have and four you can definitely live without. The five must have: high-yield online savings account; savings/checking at a credit union; retirement account (Roth IRA, 401k or equivalent); accessible checking account (ubiquitous ATMs); credit card account (yes, really). Jim’s first post: 1/31/2005.
  • Canceled Oldest Credit card from The Finance Buff. TFB went against conventional wisdom and canceled his oldest credit card. No big deal, he says. We agree (specifically for his situation, anyway). TFB’s first post: 10/05/2006.
  • Campaign Against Financial Myths: Part 4 – Mortgage & Home Ownership from Grad Money Matters. Ispf continues his series on financial myth by debunking ten common financial myths to mortgage and home ownership. Ispf’s first post: 11/19/2006.

General

Tips

Credit

Investing

Relationship

Housing

Musings

Retirement

Miscellaneous

Fun Facts on Submissions:

Oldest Blog: Flexo’s Consumerism Commentary in July of 2003! “Close second” would be Jonathan’s My Money Blog in December of 2004.

Youngest Blog: MMN’s Millionaire Mommy Next Door in July of 2007. Close second would be Keith’s Coddleshell in June of 2007.

Most popular month to start a blog: Five blogs in October of 2006.

Blog birthdays in…

2003: 1; 2004: 1; 2005: 9; 2006: 24; 2007: 26

That’s all for this week’s Carnival of Personal Finance. Thanks for visiting!

If you find any error or omission, please let us know and we’ll have it fixed right away. Next week’s carnival is hosted at Fat Pitch Financial.

]]> http://www.mint.com/blog/updates/70-tidbits-and-tips-on-personal-finance-the-109th-carnival-of-personal-finance-first-post-edition/feed/ 18 109th Carnival of Personal Finance http://www.mint.com/blog/updates/109th-carnival-of-personal-finance/ http://www.mint.com/blog/updates/109th-carnival-of-personal-finance/#comments Mon, 09 Jul 2007 13:00:02 +0000 Cap http://www.mint.com/blog/carnivals/109th-carnival-of-personal-finance/ ]]> This week’s Carnival of Personal Finance (a weekly collection of interesting articles from the personal finance blogsphere), is hosted by Jennifer at Broke-Ass Student.

Our Minty pick for the week:

Next week, the blog carnival will be hosted here at The Mint Blog. Yay!

]]> http://www.mint.com/blog/updates/109th-carnival-of-personal-finance/feed/ 2 Minty Links for 7/06/07 http://www.mint.com/blog/updates/minty-links-for-70607/ http://www.mint.com/blog/updates/minty-links-for-70607/#comments Fri, 06 Jul 2007 13:00:36 +0000 Cap http://www.mint.com/blog/updates/minty-links-for-70607/ ]]> At the end of every week, The Mint Blog will highlight some noteworthy posts from the blogsphere and beyond. Here are this week’s picks:

]]> http://www.mint.com/blog/updates/minty-links-for-70607/feed/ 1 Happy Fourth of July! http://www.mint.com/blog/updates/happy-fourth-of-july/ http://www.mint.com/blog/updates/happy-fourth-of-july/#comments Wed, 04 Jul 2007 21:49:42 +0000 Cap http://www.mint.com/blog/updates/happy-fourth-of-july/

We hope everyone will have a safe and wonderful Fourth of July.

]]> http://www.mint.com/blog/updates/happy-fourth-of-july/feed/ 1 Personal Finance Interview with Silicon Valley Blogger of The Digerati Life http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-silicon-valley-blogger-of-the-digerati-life/ http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-silicon-valley-blogger-of-the-digerati-life/#comments Tue, 03 Jul 2007 15:30:55 +0000 Cap http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-silicon-valley-blogger-of-the-digerati-life/ ]]>

Mint’s Note: The Digerati Life is a fun-to-read personal finance blog from the perspective of a software engineer/mommy/blogger. Check out today’s interview to read up on Silicon Valley Blogger’s view on the dot-com bubble burst; living in the high cost region of Silicon Valley; and finances in regards to family and kids.

The Digerati Life

Name: Finnegan Lane
Age: 40
Profession: Software engineer
Website: The Digerati Life

Seeing the dot-com bubble bursting from the inside perspective will always be different than those of us not in the industry, can you describe a little bit about what you saw during that time?

Oh yes, this brings back memories of extreme elation, when everyone at one point was dreaming of new beginnings away from the rat race. I saw how people were giddily tallying up their paper money on a daily basis and drawing up plans for their first big purchases from what sports car to buy to planning where they’d move to. I also saw the frenzy get wilder after every new announcement that a new startup just had an IPO, especially when we had friends in such companies. Commute traffic became unnerving and unbearable and housing scarce as the Bay Area attracted more and more transplants. People day traded every day while I argued with these people that they were practically throwing away their money on margin. When the bubble popped, I saw some friends lose half their net worth to the markets. Others left and returned to their home lands. Everyone got laid off (I am not exaggerating here). But people remained optimistic about their next ventures while coasting on severance (when available) and unemployment benefits so it wasn’t as bad as you’d think, except perhaps accepting the loss of those paper millions.

You’ve mention that a disproportionate number of personal finance bloggers are engineers. Do you think that’s merely a coincident or is there something more to it? Perhaps engineers (in all fields) are more interested in knowing how things work, having control over how things work, and maybe this includes personal finance?

I’m going to venture a guess on this one. Finance is math based and involves some strategizing — perfect for logical thinkers who receive a decent amount of disposable income, as many engineers make. The idea of budgeting, investing and even arbitrage may be something that they could be drawn to since a lot of finance deals with discipline, control (as you’ve mentioned) and maybe even creative thinking to some extent. Finance is a fascinating subject on its own which I’ve enjoyed for a long time. It was natural for me to get into it. But I’m also going to suggest a more sober reason for why engineers do financial blogging: they’re on the lookout for additional income; they’re technically inclined and comfortable with the internet so they can exploit its opportunities quite easily. Plus they know that financial blogging can be easily monetizable. How’s that for a different angle? What I’m surprised about is how talented a lot of these engineers are as writers. The engineers I know personally abhor writing exercises of any sort. Good luck with trying to make them do design and technical documentations with a smile.

Silicon Valley is definitely not a cheap place to live; do you have any special budgeting tricks to handle the higher cost of living?

I will admit that for a long time I lived very simply and frugally to the point of being teased about it. I started investing very early and really saved up during the high salaried days of the dot com boom. I knew it wouldn’t last and really “made serious hay while the sun shone.” My best tip is to never take for granted what you have and receive so no matter how much money you make, think twice before spending it. Also, to survive in the Bay Area, one needs to seek opportunities to grow their money along with tightening their belt. Budgeting or being frugal alone may not be enough to live comfortably in SF.

Having a young family can be quite challenging. You’ve mentioned that having two children changed your financial mindset significantly, what are some of the steps you’ve taken in meeting these financial challenges?

In the past, I was admittedly pretty tight with money. I was very careful how I spent and consumed, believing that there will be a time when my expenses will grow greater. I realized that those days of higher expenses came when my kids were born. My financial mindset changed in the sense that I had to be more relaxed about how to spend money because raising kids takes a lot of resources. My spouse and I were glad that we had built up enough financial resources to handle these changes. We also delayed having children until our mid 30’s in order to provide our family a stable and secure financial life. Choosing to become older parents was the sacrifice we took to achieve a solid financial foundation for ourselves.

One of your dreams is to become a Certified Financial Planner (which is totally awesome in our book), is there a particular reason why you want to be a CFP?

There were occasions when I’ve helped out friends and family with some advice regarding their finances. I was surprised at how many people I knew who weren’t familiar or comfortable with personal finance. I realized how much I enjoyed helping them out via discussions and informative exchanges. Now that I’ve become a finance blogger, I’ve also realized how much there was that I did not know about finance that I am now learning. So it may be the case that I hold my tongue on this for now. ;) I’m just glad to have found a place in the financial blogosphere where I can both learn and hopefully help people in this arena.

A common question to personal finance blogging parents: how do you plan to teach your kids about finances?

My kids are still quite young so they aren’t yet privy to the whole concept of money. I’m probably going to approach this in a moderate fashion. I won’t be a tightfisted parent but probably one who will lead by example. I will educate them with stories and basic information as they grow older and may withhold allowances until a much later age. I hope to see them build some ambition even while they’re young and will be encouraging them to take jobs once they’re ready.

Current Financial Strategy:

Keep a solid and hopefully flexible job, save, invest, diversify and run a business. Employ prudent asset allocation. Also, we’re hoping that our home business will fly in the next couple of years in order to relieve me of my 9 to 5 job. My husband is currently working on this startup and has sacrificed a full time income to focus on this at this time. Currently, he’s one year into this venture.

Best Financial Tip:

Never take your money for granted. Educate yourself in the areas of finance and business, stay reasonably frugal and invest your savings in index funds.

Worst Financial Move Ever:

Emotional investments in independent stocks. Shorting stocks and participating in overly complicated schemes that involve money. I realized that the more complicated a money making scheme or venture was, the worse my returns were. Getting scammed (a few times!).

Financially, I need help with:

I don’t have any issues financially, except perhaps to run my finances more efficiently. I really need to be more organized and am yearning to learn even more about certain aspects of finance that I’m not as familiar with ( e.g. real estate and other alternative investments; loan industry, etc).

What personal finance tools do you currently use to track and manage your money?

Morningstar.com tools, my spreadsheets, custom reports I’ve built for our use. I’m planning to purchase my first financial organizational software soon. Yes, I’ve been managing our finances for almost 20 years on my custom, self-developed tools.

What are the problems in your personal finance tools?

Since my spreadsheets are simple and custom, they’re probably inferior to these fancy personal finance tools that are out there.

How would your ideal personal finance tool work?

This remains to be seen. I need to review a few tools before I can comfortably answer this question.

How much do you think you currently spend on eating out?

There are 5 members in my family, so each time we go out, our bill could run up to around $75 to $100 a pop. We don’t eat out too often though. And we don’t skimp on food as much.

How often do you want to know about your personal finance?

Very often. Every day?

What is in your wallet?

I’ll pass you my wallet’s picture sometime! :) My wallet has one personal credit card, one business credit card, driver’s license, med insurance cards, a bunch of calling cards and around $100 and change.

]]> http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-silicon-valley-blogger-of-the-digerati-life/feed/ 6 Personal Finance Interview with Natali Del Conte of TeXtra http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-natali-del-conte-of-textra/ http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-natali-del-conte-of-textra/#comments Mon, 02 Jul 2007 20:27:18 +0000 Cap http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-natali-del-conte-of-textra/ ]]>

Mint’s Note: TeXtra is a technology news show with a lot eXtra! It is technology meets culture, analysis, and humor! Host Natali Del Conte follows the what’s what, who’s who, and WHY of technology news that goes beyond the Silicon Valley. She is an established technology journalist, having written for PC Magazine , TechCrunch, MarketWatch, and more.

Natali Del Conte of TeXtra

Name: Natali Del Conte

Age: 28

Profession: Journalist

Websites: TeXtra @ Podshow.com; Natali Del Conte @ Podshow.com

Current Financial Strategy:

I have a pretty low-tech way of managing my finances. I have an Excel spreadsheet that I use to balance my checkbook every month. I’ve tried Quicken and other financial tools but I like my old way that I’ve been using since I was 18 years old. I balance my checkbook to the penny – yes I am anal – and then lay out a budget for the rest of the month, depending on what I’m saving for and what I have planned for the month. All of this comes after my contributions to my savings accounts and Roth 401K. This monthly session lets me know how much I’ve saved, how much I need for bills, mortgage, etc., and how much elbow room I have to spend with.

Best Financial Tip:

My mom read a book called “The Richest Man In Babylon” when I was a child and she told me that I should always save at least 10 percent of every paycheck. So I always have. I’m a pretty strong saver. Unfortunately, I’m a strong spender too but even if I go through my spending money for the month, I stay away from that 10 percent until it’s time to buy houses or cars or things like that.

Worst Financial Move Ever:

Leasing a car. What a waste of money for a car that I can’t even drive at my leisure! I’ll never do that again!

Financially, I need help with:

Investing my money. I have a financial adviser but I don’t always understand where he’s put my money and whether it is growing or not.

What personal finance tools do you currently use to track and
manage your money?

My own homemade Excel spreadsheets, which are password protected! It’s so antiquated compared to what is available online now but I still like it.

What are the problems in your personal finance tools?

Its low-tech. I wish there was a better way that I could get real-time information from my bank’s Web sites and integrate it into my system. I’m sure it wouldn’t be hard but if it isn’t broken…

How would your ideal personal finance tool work?

It would be a bit more portable. I know that mobile browsing will get better though so I can be patient for that.

What more do you want to know about your personal finances?

I wish my investment firm had clearer statements that gave more forecasts for the future. They don’t really do that.

How much do you think you currently spend on eating out?

Not very much. I usually prefer to cook. It relaxes me. If I had to guess, I would say I spend less than $40 per week eating out.

How often do you want to know about your personal finances?

I will check my bank information every few days but then I do the full checkbook balance and strategizing session once a month. I love that night of the month actually. I plop down on the couch with my statements, checkbook, laptop, and a glass of wine. It’s not always good news but its good alone time for me. Plus, it is so satisfying to have it done and know that you’re in control of your finances.

What is in my wallet?

Two Visas that I try not to touch, an ATM card, a Victoria’s Secret credit card, grocery store club cards, Starbucks cards, and my MAC discount card. Oh sometimes cash, but I usually don’t carry that much. My sister is always lecturing me about that.

]]> http://www.mint.com/blog/personal-finance-interview/personal-finance-interview-with-natali-del-conte-of-textra/feed/ 0 The 107th Carnival of Personal Finance http://www.mint.com/blog/updates/the-107th-carnival-of-personal-finance/ http://www.mint.com/blog/updates/the-107th-carnival-of-personal-finance/#comments Mon, 02 Jul 2007 17:56:36 +0000 Cap http://www.mint.com/blog/carnivals/the-107th-carnival-of-personal-finance/ ]]> This week’s Carnival of Personal Finance (a weekly collection of interesting articles from the personal finance blogsphere), is hosted at Blogging Away Debt. For those that don’t know, The Mint Blog will be hosting the carnival two weeks for today. Yay!

Our Minty picks for the week:

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